In respect of each benefit you are required to:

• specify the category and the applicable division of the Fringe Benefits Tax Assessment Act 1986 (FBTAA); provide section references of the FBTAA for each part of your calculation, and indicate whether the benefit is a Type 1 or Type 2 benefit and state the reason.

Reasons for any exclusions must also be provided.

Ten gift vouchers worth $300 each for staff who had significant work anniversaries in the business.

It was discovered that one employee had been overpaid $2,000. It was agreed that she would repay this when she eventually left the business. It would be taken out of any payments for unused annual and long service leave. The deficiency came to light on 1 April 2019.

New garden furniture which was placed in an outdoor area which staff could use at lunchtime or after work for drinks. It cost $1,200.

WBG provided fresh fruit for the staff three times a week. This cost $2,500 for the year.

End-of-month drinks were provided and this cost $4,600 for the year.

The company does not qualify as a SBE.

The company has paid GST where it is liable to do so and all amounts shown are GST-inclusive.

REQUIRED:

Complete working papers showing how you have calculated the taxable value of each benefit provided. Include in your working papers references to the FBT legislation for each benefit provided and provide reasons and explanations for any items which you exclude from the calculations. Calculate the FBT payable by World’s Best Gifts Pty Ltd.